#USDMXN @ 18.6238 jostles with the 200-EMA, 100-EMA confluence to prod two-day downtrend., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/MXN jostles with the 200-EMA, 100-EMA confluence to prod two-day downtrend.
• Bearish MACD signals, downbeat RSI (14) suggest further declines.
• Seven-week-old horizontal support appears tough nut to crack for bears.
• Buyers need successful break of multi-day-old resistance line for conviction.

The pair currently trades last at 18.6238.

The previous day high was 18.8777 while the previous day low was 18.5925. The daily 38.2% Fib levels comes at 18.7014, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.7688, expected to provide resistance.

USD/MXN bears take a breather around 18.60 during early Wednesday as market players await the Federal Open Market Committee (FOMC) monetary policy meeting outcome.

Even so, the Mexican Peso (MXN) pair prints mild gains while snapping the previous two-day losing streak at the lowest levels in a week.

That said, the convergence of the 100-bar Exponential Moving Average (EMA) and the 200-EMA restricts the immediate downside of the USD/MXN pair.

However, the bearish MACD signals and downbeat RSI (14), not oversold, keeps sellers hopeful of breaking the 18.60 support confluence.

It’s worth noting, though, that an area comprising multiple levels marked since early February, around 18.50, appears a tough nut to crack for the USD/MXN bears and could restrict the pair’s further downside past 18.60, which if ignored won’t hesitate to portray a slump towards 18.00.

It’s worth noting that the mid-March swing low joins the early March peaks to highlight the 18.25-20 region as an extra filter towards the south.

On the flip side, the USD/MXN pair’s rebound from the current levels can again aim for the 19.00 round figure before marking one more battle with a descending resistance line from early January, close to 19.20 at the latest.

Overall, USD/MXN is likely to remain pressured even if the room towards the south appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.6135 at the time of writing. Pair opened at 18.597 and is trading with a change of 0.09% % .

The pair is trading above its 20 Daily moving average @ 18.4231, below its 50 Daily moving average @ 18.6178 , below its 100 Daily moving average @ 19.049 and below its 200 Daily moving average @ 19.6065

The previous day high was 18.8777 while the previous day low was 18.5925. The daily 38.2% Fib levels comes at 18.7014, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.7688, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.5005, 18.4039, 18.2153
• Pivot resistance is noted at 18.7857, 18.9743, 19.0709

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